Chile Approves Tax-Reform Legislation

Lower House Clears Raising of Some Taxes to Fund Education Reform

By

Ryan Dube

May 15, 2014 5:26 p.m. ET

Chilean President Michelle Bachelet's administration has cleared its first hurdle for the approval of a broad tax reform, though some analysts believe the controversial initiative is starting to drag down her popularity and risks undermining investments.

The lower house of Congress approved legislation late Wednesday to raise taxes on businesses and wealthy individuals to fund a key campaign promise to reform the education system. The...